Latour gets out of the en primeur biz
I know we have a lot of wine enthusiasts and people in the wine business here, and I was hoping some could weigh in on the significance of the big news about Chateau Latour's announcement this week that they are getting out of the en primeur or futures market for their future releases. Does this mean the system is on the way out, at least for Bordeaux?
I have only a rudimentary understanding of the en primeur system myself, so maybe a brief dumb-guy explanation of how it works might be helpful too.
Re: Latour gets out of the en primeur biz
Buying futures is a long standing way for the Bordeaux producers to lift your wallet while making you wait for product. However, if you were buying futures, you were getting a better price, so it did have advantages.
My opinion on this is that as the 5 First Growths have inflated so highly in price, along with Diageo folding their Chateau and Estates business, that the British and American futures market has dried up anyway.
If Latour can sell most of their stock to China at a price higher than En Primeur, then why not.